The Secretary of State for Business Innovation and Skills v Warry [2014] EWHC 1381 (Ch) (24 February 2014)

The Secretary of State for Business Innovation and Skills v Warry [2014] EWHC 1381 (Ch) (24 February 2014)

Mr Warry's conduct as director involved gross negligence in failing to carry out proper due diligence against a known background of rampant VAT fraud, making him unfit to be concerned in the management of a company under section 6 of the Company Directors Disqualification Act 1986.

Citation
[2014] EWHC 1381 (Ch)
Parties
Claimant: Secretary of State for Business Innovation and Skills; Defendant: William Nicolas Warry
Jurisdiction
England and Wales
Judgment Date
24 February 2014
Procedural Posture
Director's Disqualification Application / Trial Judgment
Outcome
Director disqualified under section 6 of the Company Directors Disqualification Act 1986 for gross negligence.
Legal Topics
Director's Disqualification, MTIC VAT Fraud, Due Diligence, Unfitness to Manage Company
Company Law Insolvency Law Tax Law Director's Disqualification MTIC VAT Fraud Due Diligence Unfitness to Manage Company

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Parties

Secretary of State for Business Innovation and Skills

Claimant

William Nicolas Warry

Defendant

Procedural Posture

Director's Disqualification Application / Trial Judgment

Legal Issues

  1. 1 Whether Mr Warry knew or should have known that Chapter 6 participated in transactions connected with fraudulent evasion of VAT
  2. 2 Whether Mr Warry allowed Chapter 6 to participate in such transactions
  3. 3 Whether Mr Warry caused or allowed Chapter 6 to make wrongful claims for input tax recovery

Ratio Decidendi

Mr Warry's conduct as director involved gross negligence in failing to carry out proper due diligence against a known background of rampant VAT fraud, making him unfit to be concerned in the management of a company under section 6 of the Company Directors Disqualification Act 1986.

Court Disposition

Director disqualified under section 6 of the Company Directors Disqualification Act 1986 for gross negligence.

Orders

  • Disqualification order against Mr Warry for a period to be determined (minimum 11 years indicated for MTIC fraud cases).